Tuesday, June 9, 2009

THE STATISTICS OF SUPPLY

In 1996 life insurance companies in Canada discontinued their support of the lifetime Career distribution channel as a direct consequence of the Ontario provincial legislation passed in that year. The legislation made it unprofitable to invest the time and resources necessary to provide new advisor recruiting, development, professional life insurance training and continuing education for professionals who chose a lifetime career in this field.

Here are the stats:

Fewer than 10% of the 17,000 certified financial planners in Canada are under age 34.The average age of financial advisors in all distribution channels, according to Investment Executive research, is 47. Some estimates place the average age of insurance advisors at 57.

The total number of life insurance members of Advocis, the Canadian life insurance organization responsible for granting professional life insurance designations is approximately 12,000. The maximum number of advisors who are dual licensed having both life insurance industry designations and a Certified Financial Planning designation does not exceed 12,000. The total number of life insurance licensed advisors in Canada is 55,000.

There are 14,000,000 boomers in Canada entering retirement who need Financial Planning, Retirement Planning and Estate Preservation Planning professionally trained and qualified advisors.

To accommodate every boomer in Canada the advisors who are fully designated would have to acquire 1,000 new clients each.

The supply logistics are prohibitive under the current distribution conditions. There are simply too few experienced and designated advisors to absorb the massive boomer numbers. To solve the supply problem we are changing the distribution paradigm.

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